What happens when things go K shaped. A lesson from English football.

I promised myself I wouldn’t do one of those takes on the failure of the European Super League and what it means for innovation/marketing/business etc.

Ah well.

However, it is a nice example of what happens when an economy (let’s face it, football is business) goes K shaped … just like we’re starting to see with the economies of most developed countries.

I grew up confused (some might say I still am) holding season tickets to Burnley (back then hovering between spells in the second and third tiers) and Blackburn Rovers (owned by a local steel magnate) and on their way to winning the Premier League. Few people watching Alan Shearer lifting trophies would choose to put their allegiance behind the team more used to watching Marlon Beresford pick the ball out of his own net. Still, the gap between the haves and the have nots back then didn’t feel too out of whack.

Football has boomed in the years since as television money transformed the beautiful game, but many clubs are now living in a more precarious position than ever before. What has been a boom for the elite like Manchester United, the perennially Premier League like Everton and the nouveau riche like my beloved Burnley hasn’t filtered down to former greats like Nottingham Forest or founder members like Notts County.

While 12 ‘big’ teams attempted to create a league of their own, seeing yet another opportunity for growth, those around them that are critical for the whole ecosystem of player development, fandom, community and competition are at risk of disappearing forever.

“Football is the most important of the least important things in life” — Arrigo Sacchi

I worry that we might see something a bit like this happen in the business world, for the early recovery suggests things might be lucrative for some, it’s a slog for many. The gulf between a two home owning upper middle manager and a young renter or shop floor worker is a divide that feels increasingly unfair.

The impact of the last 15+ months has been tough on smaller businesses than larger ones too, many entrepreneurs have had to call it quits and many new ones are learning the gritty side of the calling. It rankles a little when we begin to see many big businesses paying out astronomical bonuses to senior leadership, and to a certain extent that’s fair as the captains of industry steered their ships through an almighty storm.

Rapidly rising house prices, stagnating wages for the masses and a lack of support for many entrepreneurs feels like people are starting to say ‘hang on a minute … is this it?’

“Sales of cars that cost between $80,000 and $90,000 grew by 91 per cent in the last quarter of 2020. By comparison, the sales rates of cars that cost less than $20,000 collapsed.” — CBC

Last weekend, Manchester United fans sick of a decade plus of ownership more used to American major league franchise systems stormed the gates of Old Trafford causing their game with Liverpool to be postponed. Similar protests have happened outside empty stadiums of Arsenal and Chelsea.

I think there’s a way to run with this, we’re not on the verge of a Bastille style revolution or Occupy Wall St type movement just yet but in a world where “sustainability” is the new favourite buzzword of business leaders (sustainable for whom is a good question) I don’t think it’s going to be tolerated. Wait till interest rates rise, mortgage payments become a strain as the middle struggles and I suspect this will become a bigger issue.

Just like the Glazers, Floriano Perez and Stan Kroneke showed themselves to be wildly out of touch with fans they treated more like consumers, the same feels true for boardrooms all over the place in relation to their employees and customers. It’s easy to take your own experiences as theirs for granted, it helps to see what is going on outside of your bubble.

Sustainability in football isn’t about millions more for the elite, because how can you be elite if there’s not the spirit of competition and an entire ecosystem supporting you? Likewise, in the corporate world, once you lose touch with your customers’ reality and the needs of the employees that support them, the whole thing falls over.

It’s also a good way to make those elevator rides with junior employees a little less awkward …